Prosperity Life Unit to Acquire National Western Life in $1.9 Billion Deal
Deal Valued at $1.9 Billion
A unit of insurer Prosperity Life Group has reached an agreement to purchase National Western Life Group in a deal valued at $1.9 billion. The announcement of this acquisition has caused shares of the Texas-based life insurer to soar to their highest levels in six weeks.
Previous Takeover Attempt
This acquisition comes after Prosperity Life Group abandoned its attempt to acquire American Equity Investment Life Holding, a peer of National Western Life Group.
“The acquisition of National Western represents a significant milestone in the continued expansion of our insurance business,” stated Nicholas von Moltke, CEO of Prosperity Life Group. The company also has a reinsurance and asset management arm.
A Generous Offer
The deal offers National Western Life Group’s investors $500 per share, which is a premium of more than 87% compared to the company’s unaffected share price on May 16. Additionally, this transaction represents a nearly 20% premium to the stock’s closing price on the previous Friday.
Backed by a Capital Commitment
Activist-investor Elliott Investment Management will support the deal with a capital commitment. Prosperity Life Group plans to finance the acquisition using a combination of cash and debt. The transaction is expected to be completed in the first half of 2024.
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